CPAR Taxes

CPAR - 2022/May, Seg 4 - Determining Reasonable Compensation, Hobby Losses Deductibility and More

The determination of reasonableness when it comes to S corporation officer compensation is an IRS requirement. Distributions and other payments by an S corporation to corporate officers should be treated as wages "to the extent the amounts are reasonable compensation for services rendered to the corporation." Barbara Weltman, president at Big Ideas for Small Business, explains what "reasonable" means according to the IRS and why it matters whether or not compensation is reasonable.

Learning Objectives:

  • Identify key considerations used by the IRS to determine reasonableness with respect to S corporation officer compensation and the two tests most commonly used;
  • Understand what qualifies as a deductible business expense;
  • Recognize changes in bonus depreciation rules for first year property and leased or owned vehicles for 2022 and forward; and
  • Understand some of the proposed changes under the SECURE Act 2.0 that will be effective 2023, if enacted.

Prerequisites/Advanced Preparation:

Work experience in tax planning or tax compliance, or an introductory course in taxation.

Speaker / Author:

Barbara Weltman

A nationally recognized expert in taxation, Barbara Weltman has built her reputation around providing timely advice and accurate analysis on business tax matters. As a tax and business attorney, Barbara has the up-to-the-minute knowledge that business managers need to get - and to stay - ahead. She is the top-selling author of numerous books on taxation and finance, including J.K. Lasser's Small Business Taxes. Business executives also know Barbara from her appearances on Financial Management Network, from her popular radio show and as publisher of "Idea of the Day." By subscribing to "This Week in Business Taxation," you can share Barbara Weltman's insights into recent business tax developments 20 times each year.


Price (USD)

Standard: $69.90


Course Code : CPAR1567-FM

Release Date : 05/26/2022
Expire Date : 07/16/2023
Credits :
CPE 2.00
QAS 2.00

Length : 1hr 40min
Course Level : Update
Course Type : QAS Self-Study
Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Taxes

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